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Cabinet nod for 300 MW LNG power plant

05 Nov 2020

  By Maheesha Mudugamuwa The Cabinet of Ministers has approved the amended version of the project agreement by the Ceylon Electricity Board (CEB) and Lakdhanavi Ltd. for the construction of a 300 MW LNG (liquefied natural gas) power plant, The Morning learnt. Accordingly, the Power Ministry is expected to begin construction immediately. In February this year, the Government awarded the contract to construct the second phase of the 300 MW LNG power plant in Kerawalapitiya to Lakdhanavi Ltd., overturning a cabinet decision of the previous Government made just over a year prior. The approval, as learnt by The Morning, is conditional upon Lakdhanavi’s withdrawal of a petition filed at the Supreme Court (SC) against the contract being originally awarded to a Chinese company,  GCL China Windforce and RenewGen. Lakdhanavi filed a petition at the SC soon after the decision was reached in February last year as it was the lowest bidder, while GCL China Windforce and RenewGen was the second lowest bidder. Originally, cabinet approval was granted to award the tender to set up two 300 MW LNG power plants in Kerawalapitiya with the Procurement Appeals Board (PAB) approving the awarding of the second contract to Lakdhanavi Ltd. At the time, then Power and Energy Minister Ravi Karunanayake said the decision to award the power plants to the first and second bidder in a single tender for an independent power producer was bipartisan. Furthermore, when contacted by The Morning last week, Minister of Power Dullas Alahapperuma said the cabinet approval this time was conditional – it was given on condition that Lakdhanavi Ltd. withdraws the court case. In the new cabinet proposal submitted, the Ministry requested the Cabinet to get confirmation from the Attorney General’s Department as to whether the court case was withdrawn by Lakdhanavi Ltd., he added. However, he had noted that construction would be launched once cabinet approval is given. Minister Alahapperuma also said that two LNG power plants will be constructed by the year 2023 as a solution to the power crisis in the country.

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